1.3 Advise Toyota SA on the initiatives, the company can do to maintain and gain the market share in the motor industry.
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Case Study
Toyota SA Motors (TSAM) has announced a R4.28bn investment in local vehicle assembly and parts supply. Speaking at the company’s annual State of the Motor Industry address at Kyalami on Thursday, president and CEO Andrew Kirby said the lion’s share of R2.43bn would go towards the production of a new passenger-car model from October 2021 at the Prospecton plant in KwaZulu-Natal.
The new car, which he did not name, will replace the Corolla model line that will end in 2020. TSAM also announced it will build a Toyota Hybrid Synergy Drive vehicle, in a first for the continent. Kirby said the investment will inject R2.85bn a year into the South African economy and create about 1,500 new jobs. He noted that the deal was made possible due to industrial policy certainty in the form of the Automotive Production and Development Programme, the government’s incentive plan for the motor industry. The next phase of the APDP runs from 2021 to 2035.
TSAM has boosted the local economy with more than R12bn in manufacturing facilities, equipment updates and dealer operations in the past decade. The latest investment includes a R454m enhancement to the local production of the Hiace Ses’fikile minibus, with a further R91m earmarked for increasing output of taxis from 14,000 to 18,000 units a year.
A further R20m is going towards the establishment of a packing plant to support TSAM’s Hilux knock- down assembly plant in Kenya. A sum of R365m will be spent to double the size of Toyota’s Atlas Warehouse in Gauteng’s East Rand, which when completed in 2021 is expected to be the southern
hemisphere’s largest automotive parts warehouse. TSAM also announced that the new Corolla Quest sedan would go on sale in SA in March. The car, based on the outgoing Corolla, will continue as a budget-orientated model selling alongside the new-generation Corolla which is being launched locally within weeks
1.3 Advise Toyota SA on the initiatives, the company can do to maintain and gain the market share in the motor industry.
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- Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
- CASE STUDY 2 Talleres Auto Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and recovery service. Two of the parts that TA frequently uses are starters and alternators, which were obtained from a local distributor. In turn, the local distributor ordered parts from a prime distributor. Starters and alternators were obtained from a remanufacturer, who replaced the windings and tested the products using parts bought from a component supplier. Most of TA’s customers made ‘distress purchases’ – their car had broken down and they wanted it to be fixed quickly. So TA needed a fast replacement service from the local distributor. While the distributors both recognised the need for fast replacements, the performance of the purchasing department at the remanufacturer was measured on cost savings. Thus the component supplier thought that the name of the game was low cost. Questions 2. What were the order winners and order…CASE STUDY 2 Talleres Auto Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and recovery service. Two of the parts that TA frequently uses are starters and alternators, which were obtained from a local distributor. In turn, the local distributor ordered parts from a prime distributor. Starters and alternators were obtained from a remanufacturer, who replaced the windings and tested the products using parts bought from a component supplier. Most of TA’s customers made ‘distress purchases’ – their car had broken down and they wanted it to be fixed quickly. So TA needed a fast replacement service from the local distributor. While the distributors both recognised the need for fast replacements, the performance of the purchasing department at the remanufacturer was measured on cost savings. Thus the component supplier thought that the name of the game was low cost. Questions 1 What were the order winners and order…CASE STUDY 2 Talleres Auto Talleres Auto (TA) is an SME based in Barcelona. TA attends to broken-down vehicles, providing a roadside repair and recovery service. Two of the parts that TA frequently uses are starters and alternators, which were obtained from a local distributor. In turn, the local distributor ordered parts from a prime distributor. Starters and alternators were obtained from a remanufacturer, who replaced the windings and tested the products using parts bought from a component supplier. Most of TA’s customers made ‘distress purchases’ – their car had broken down and they wanted it to be fixed quickly. So TA needed a fast replacement service from the local distributor. While the distributors both recognised the need for fast replacements, the performance of the purchasing department at the remanufacturer was measured on cost savings. Thus the component supplier thought that the name of the game was low cost. Questions 3. What impact on customer service was this…
- CASE STUDY Siti is the associate director of a nonprofit agency that provides assistance to children and families. She is the head of a department that focuses on evaluating the skill-building programs the agency provides to families. She reports directly to the agency leadership. As a whole, the agency has been cautious in hiring this year because of increased competition for federal grant funding. However, they have also suffered high staff turnover. Two directors, three key research staff, and one staff person from the finance department have left. Siti has a demanding schedule that requires frequent travel; however, she supervises two managers who in turn are responsible for five staff members each. Both managers have been appointed within the last six months. Manager 1: Husna has a specific background in research. She manages staff who provide research support to another department that delivers behavioral health services to youth. Kelly supports her staff and is very organized;…CASE STUDY Martha Jayasekera is a 25-year-old young woman with cerebral palsy, who lives in her own flat. She uses a wheelchair and needs support with many activities of daily living. Her support needs include getting out of bed in the morning, washing, dressing and getting ready for the day and support with getting into bed in the evening. Martha Jayasekera enjoys going out with friends and working part time, as a counsellor for young adults with physical disabilities in a local community support centre. The home care organisation who delivers her service are requested to come and support her to go to bed at 10 p.m. but the carers frequently arrive at 7p.m. to perform this service and have continued to do this despite Martha’s complaints. When asked why this happens the care service says a lot of the staff do not wish to work such late hours and feel unsafe in the area around Martha’s flat. The question is: In a reflective account, explain how this case study has contributed to your…CASE STUDY: Food Lover's Market which was launched 25 years ago has evolved from a pure fresh fruit and vegetable store known as Fruit and Veg City into several brands, the latest of which serves meals. The first Johannesburg-based Food Lover's Eatery opened in Sandton last month (August 2018) at the Marc on Rivonia Road, a new shopping centre. There are 3 other Food Lover's Eateries in the Cape Town CBD selling 10 000 to 15 000 meals a day between them. With its design 2 years in the making, the Rivonia store feels like a sophisticated food deli or food hall in a major capital along the lines of Eataly, the popular open-plan food hall concept in the US. Mike Coppin, co-founded the Food Lover's Market group with his brother Brian said the quality and variety were unrivalled. He expects it will become a regular lunch destination for local businesses. "It has a strong focus on convenience in both the store design and service and is dedicated to offering a fast lunch service. We find it's…
- Case Study: Tropical Leisure Limited Tropical Leisure Limited has been making high quality Caribbean leisure wears for over twenty-five years, in old rented premises located in the heart of the Barbadian capital of Bridgetown. The company has a flexible labour force of about twenty employees and three directors, only one of whom, namely Mr. Grant, the managing director, is fully active in the business. The company specializes in leisure and swim wear garments. Their current range consists of tee shirts, shorts, skirts and bath suits in rich vibrant Caribbean colours and styles for men, women and children. The company capacity is 400-500 garments per week, depending on style and continuity of the production run, but additional floor space and machines could be brought in quickly to raise production levels to a maximum of 1000 garments weekly if required. Trade sources estimated that the Barbadian market was valued at US$ 1.5 billion in 2010 but since then inflation and recession has…CASE STUDY In September 2020, ACME Fabricators advised its staff that their new factory and offices out in semi-rural Angle Vale would be ready for completion by the end of April2022. ACME was a responsible company and liked to keep their premises clean and tidy and their staffhappy. The new premises were developed on a 4.5-hectare site, previously used for graincrops. Consequently, ACME decided that significant landscaping would be required to enhance the amenityof the otherwise bare land. The senior executive group pictured some land contouring with an attractivegreen lawn, and trees and shrubs to soften the impact of otherwise stark commercial buildings. Accordingly,they notionally allocated $232,000 for the project, and developed a tender document that called for the workto be completed by the time they moved to the new premises. They then invited proposals for landscapingand quotes for the work.A company called Arbor Industries submitted an artist's sketch for the ACME evaluation…CASE STUDY In September 2020, ACME Fabricators advised its staff that their new factory and offices out in semi-rural Angle Vale would be ready for completion by the end of April2022. ACME was a responsible company and liked to keep their premises clean and tidy and their staffhappy. The new premises were developed on a 4.5-hectare site, previously used for graincrops. Consequently, ACME decided that significant landscaping would be required to enhance the amenityof the otherwise bare land. The senior executive group pictured some land contouring with an attractivegreen lawn, and trees and shrubs to soften the impact of otherwise stark commercial buildings. Accordingly,they notionally allocated $232,000 for the project, and developed a tender document that called for the workto be completed by the time they moved to the new premises. They then invited proposals for landscapingand quotes for the work.A company called Arbor Industries submitted an artist's sketch for the ACME evaluation…